UAE-based multinational telecom services operator, e& has made an offer to increase its stake in Saudi telecom company Etihad Etisalat (Mobily) to 50 percent and one share.
Formerly known as Etisalat, e& owns a 28 percent stake in Mobily. According to the statement, e& has offered a price of $12.53 (47 Saudi riyals) per Mobily share through a pre-conditional partial tender offer.
“The purpose of the discussions is for e& to come to an understanding with the Mobily board of directors in respect of the conditions applicable to the potential offer (including its implementation) which the Mobily board would be able to recommend to Mobily’s shareholders,” e& said in a regulatory filing to Abu Dhabi Securities Exchange (ADX), where its shares are traded.
The offer by e& is expected to strengthen its existing ties with Mobily and is in line with its “strategic objectives to expand and optimize its portfolio by pursuing opportunities within its existing footprint,” the UAE telecom company noted.
“E& has not declared a firm intention to make the potential offer at this time. Subject to applicable regulations, e& remains able to formally launch an offer at any time should it choose to do so, without having to come to an understanding with the Mobily board,” the statement said.
As per the company statement, “e& has appointed HSBC Saudi Arabia as an independent financial adviser, and Khalid Al-Thebity Law Firm in affiliation with Squire Patton Boggs (US) LLP as legal adviser to assist it in relation to the Potential Offer.”
Earlier this year, UK-based leading brand valuation authority Brand Finance selected Etisalat as the strongest telecom brand in the world.
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